Hormel Foods(Hrl) Financials: Receivables Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - receivables turnover
This chart shows the historical trend of receivables turnover for HRL compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Receivables Turnover
Definition: Receivables turnover tells you how quickly the company collects payments from customers after making sales on credit. A high turnover means customers pay on time and cash flows smoothly. Slow turnover suggests delayed collections, which can create cash shortages and financing stress.
Interpretation:
• In '2021', HRL's receivables turnover was 12.60, showing efficiency in collecting outstanding receivables. Industry average for Meat/Poultry/Fish in '2021' stood at 9.38.
• In '2022', HRL's receivables turnover was 14.01, showing efficiency in collecting outstanding receivables. The increase since '2021' reflects strengthening financial performance. Industry average for Meat/Poultry/Fish in '2022' stood at 9.65. Industry average increased by 0.27 compared to previous year.
• In '2023', HRL's receivables turnover was 14.25, showing efficiency in collecting outstanding receivables. The increase since '2022' reflects strengthening financial performance. Industry average for Meat/Poultry/Fish in '2023' stood at 4.48. Industry average declined by 5.17 from previous year.
• In '2024', HRL's receivables turnover was 14.08, showing efficiency in collecting outstanding receivables. The decline from '2023' may indicate some operational or financial challenges. Industry average for Meat/Poultry/Fish in '2024' stood at 4.18. Industry average declined by 0.30 from previous year.
Overall, HRL's receivables turnover has steadily improved over the past 4 years.
Formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable
Good Range: Ranges 5 to 15 depending on credit terms.